JP Morgan Coin - Top 10 Narratives  for Just Pushing My Case (JPMC) - Special Edition





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Sankalp's Blockchain Express Weekly
JP Morgan Coin - Top 10 Narratives  for Just Pushing My Case (JPMC) - Special Edition
By Sankalp Shangari • Issue #23 • View online
Roses are red
Violets are Blue
Don’t buy JPM Coin
Be amuse now they can track you :)

What is all the Fuss about JPM Coin?
First they ignore you, then they laugh at you, and then……they create their own coins…then they buy Bitcoins
JPM Coin (“JPMC”) is a Stable coin that is backed by the USD. Essentially it is a digital USD “token” that can be used for quick transactions and settlements aka exchanged for quick USD’s within the JPM environment only….for now at least. Since transactions for JPMC settle & record on a private blockchain called Quorum (a fork of Ethereum), hence all this hype. More so, when Jamie Dimon had publicly criticised Bitcoin and called it a scam. Essentially JPMC unlocks B2B payments risks, creates efficiencies and instant value transfers (in JPMC of course). Its nothing but an internal, immutable (presumably) and far efficient accounting system — for now. 
Brad Garlinghouse
As predicted, banks are changing their tune on crypto. But this JPM project misses the point – introducing a closed network today is like launching AOL after Netscape’s IPO. 2 years later, and bank coins still aren’t the answer
What would JPM use this for?
  1. International payments for clients
  2. Securities & derivatives transactions like the CD they created for a Canadian bank
  3. Create their own Coin of course to compete against Ripples of the world as they realise blockchain is inevitable as a technology now.
Top 10 Narratives Surrounding JPM Coin
1. Step Forward?
Definitely great for massive crypto adoption starting with institutional clientele. Humans always bend towards more lazier things - easy to do, comfort and JPMC provides that. If that saves cost, as well, so why not then? This is not the first time that a bank or financial institution has attempted a bank coin. But this time given the flamboyant CEO Dimon involved, hype is crazy. MUFG, Citi, DB, Santander etc all have variations of this already. The problem is that these are private networks, that limit the ability of these digital assets for retail massive usage and are not really trustless. For eg, JPM is still backed by the USD and operated by their own machinery. Same old candy in a new wrapper IMO
2. Is this a CryptoCurrency?
Clearly no. Not yet. This is USD or call this a digital USD. But not a crypto. Not a decentralsied platform for payments. It’s by the elites, for the elites, to the elites. 
Decentralised vs Centralised Private Networks
Decentralised vs Centralised Private Networks
Jerry Brito
If JPM Coin is a cryptocurrency, then so is Fortnite V-Bucks.
3. Retail vs Institutional Access
I would assume yes, they will open to retail soon but for now its institutional elite only. They cannot stand Ripples of the world go for world domination and be left behind. Other banks cannot either. Goldman already owns a stable coin called USDC — owned by Circle which is owned by GS. They can clearly see this pie is much larger that what they anticipated. Now they want a piece of it, probably the entire pie.
4. What about Money Laundering?
What about it? It is business as usual. Money laundering has not stopped for 100 years and will not stop now. Write this down - MONEY LAUNDERING CANNOT HAPPEN WITHOUT BANKS knowledge or support because at some point it has to be physically settled. There are several examples of this and banks have been publicly fined for this. Crypto does not cause money laundering (0.00001%). Banks do (99.99999%)
Best way to rob a bank, is to buy a bank
Pomp 🌪
The most popular token for money laundering this year will be JPM Coin
5. RIP Ripple?
Not so fast but probable. This is how I think it will pan out. JPM creates their coin. Others already have or will or collaborate to create their own versions. They all will push their institutional or retail clients (under some disguise like Circle @ GS). Efficiency and settlements will be the excuse. At some point there will be interoperatability between these Banksy coins. Call that SWIFT 2.0. Still controlled by the US banks. Then they will destroy the crypto world by creating derivatives between Banksy and Real Crypto. We will all live happily ever after…….in Hell…..again.Here is what the Ripple CEO Brad Garlinghouse has to say about Bank Coins
Tushar Jain
Banks were obviously never going to use XRP for settlements and enrich Ripple Inc (who owns more than half of all XRP). They would rather enrich themselves instead!

Kudos to JPM for being first. They are going to wipe the floor with Ripple.
6. Floodgates Open
Yes. Not only in the US but globally. China and Russia will have their own exotic versions. Would be very interesting to see that. Traditionally, UK follows US, Europe follows UK, Singapore and HK follow Europe and UK, Rest of Asia follows Singapore and HK and then everyone falls in line. China & Russia have their own playground in their own backyard. 
Anthony Sassano
Circle, Gemini, Tether: *issues bank coins worth billions of dollars*

JP Morgan: "Hold my beer"
7. How about FANGS
Will the Slim shady please stand up? They are far ahead. They were just worried off the backlash everywhere. This news takes away some fears. It would be even more interesting to see Amazon, Apple, Alibaba, Tencent & FB come with their own stable coins. Difficult to stop the herd IMO. Then imagine Jack come up with his own twitter based lightening payments? Some great points in this Forbes article 
709 ⚡️
@TusharJain_ @arrington It's not an 'XRP type asset'. They've created a walled garden. There's counterparty risk. Do you think other banks will use JPM coin? No. Sure, other banks could create their own coin, but those will also be walled gardens.
8. Binance or STO or IPO?
Funny eh? Neither. They don’t need to. With all this attention you and I are giving them, they have already created a lot of value for JPMC. I am sure the desks are already ringing with clients demanding to go long JPMC now. Then there is the Crypto world screaming how to short this. Nothing yet. It is a private network that is controlled by the bank and just like the government they can print as many JPMC as they want. Here are the options they have IMO: 
a. Print parallel to USD as a currency and come together with other banks one day and replace USD (probably govt at play on that one)
b. List as a separate company and do a STO (or whatever that is called in the future)
c. Do an IPO and call it creation of shareholder wealth. I call it financial engineering
d. Do nothing and see it grow and show it on balance sheet for current stock to grow. Others follow suit. SEC plays it quiet.
9. Reserves & Supply
Just like USDT or USDC, it’s all backed by USD and would be dependent on number of people (institutional clients in the beginning) who hold these coins. More the merrier to be honest. Doesn’t it create artificial demand for the USD? Just about when China and Japan are starting to stop buying USD (in fact starting selling USD in the market). Btw, JPM Coin will initially run on Quorum, the bank’s private version of ethereum — but not exclusively. More like a stolen fork of Ethereum. Just like Ripple and its co-brother Stellar. 
10. Bitcoin Killer - Not so fast
Crypto Bobby
JPM Coin to be used by “corporations, banks and broker-dealers for international payments, securities transactions and treasury services.”

Not sure why people are making this a “Bitcoin vs JPM” when it’s clearly “Ripple vs JPM”....

Long Bitcoin, Short XRP?
Pomp 🌪 on Twitter: "Today’s daily podcast for subscribers covers:
Did you enjoy this issue?
Sankalp Shangari

Based in Singapore, Sankalp is involved in most aspects of Blockchain - as an entrepreneur, consultant, investor in several AI & Tech related ventures. You can reach out on twitter /linkedin/ medium @sankalpshangari

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